Procter & Gamble Enhances Transparency on Wood-Pulp Supplier Audits

Procter & Gamble (NYSE:PG) has committed to providing greater transparency regarding its wood-pulp supplier audits. This decision is a response to ongoing demands from shareholders for more sustainable sourcing of forest products.

As the world's largest consumer goods manufacturer, P&G has acknowledged that it conducts audits of its suppliers but has historically shared minimal details about these processes. The environmental impact of logging has brought increasing scrutiny to P&G and other major pulp consumers.

Andrew Shalit from Green Century, a shareholder advocate, confirmed that discussions are ongoing between P&G and its investors to finalize the specifics of the new disclosures. Shalit underscored the importance of transparency for investors mindful of the environmental impacts of their investments, particularly regarding sourcing pulp from Canada's vulnerable forests.

Earlier this month, P&G noted that it protects its global supply chain information for competitive reasons. However, Green Century, which also invests in Home Depot (NYSE:HD), is urging P&G to establish a precedent for supply chain clarity. This step could influence other companies that rely on Canadian pulp.

Shalit expressed optimism about the advantages of this initiative for P&G, stating, "We think it will benefit P&G for the depth and rigor of their oversight to be better understood by investors." Discussions between P&G and shareholders are expected to elaborate on the extent of the forthcoming disclosures.

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